• Suite vs Best of Breed – Let the Battle Begin (Yet Again)

     

    A month or so ago I sat in a room with a small group of bloggers discussing the enterprise software space with NetSuite CEO Zach Nelson and one sentence he said stuck in my mind: The same was is…

  • Multitenancy and the Enterprise Service Management Space

     

    I’ve written previously about Service-now, an enterprise level service management tool. The other day I had an email from Doron Gordon, CEO of SAManage, an Israeli on-demand IT Asset & Service management service. Gordon was keen to get me to take a look at SAManage and in his introductory email told me that they:

    compete with Service-Now. Our advantages are usability, design, and multi-tenancy which allows us to deliver self-provisioning and self-service

    I’ll not dwell on the usability and design aspects, in my review of Service-now I mentioned that I found it quite complex to use and that this complexity somewhat hampered the usability of the product. I’ve included some screenshots from SAManage below or even better check their demo account on the site.

    What I wanted to write about however was the multi-tenancy issue that Gordon raised. You see Service-now are unashamedly single-tenant – interestingly enough they even have a presentation differentiating SaaS and ASP in which they mention the perils of multi-tenancy (alleged inflexibility). Funnily enough we’re in the process of writing a whitepaper comparing and contrasting on-premise, ASP and SaaS and also focused on multi-tenancy as a core issue – our analysis is somewhat different to Service-now’s though in that we consider multi-tenancy to be close to a core requirement for SaaS.

    At the recent SuiteCloud event (see disclosure) we saw the high levels of customization that NetSuite is offering end users through its multi-tenant application.

    Interestingly enough, a company I’m an advisor to, Connect2Field, is right now going through the perils-of-single-tenancy issue. Connect2Field is an application for field service workers and one of the barriers to growth they’d been encountering was their (until recently) single-tenant approach. This approach has some particular detrimental impacts:

    Inability to self provision

    Part of the strategy that a SaaS vendor needs to adopt is enabling the self-provision of the application by end users. Quite simply there should be no impediment to a user signing up and starting with the application immediately – single-tenancy unfortunately requires that a separate database be set up for each user and results in a manual process needing to be made for provisioning. A previous single-tenancy strategy directly impacted on the ability of Connect2Field to grow its userbase without significant manual input.

    Cost implications

    While I’m a firm believer in articulating the added value that SaaS can bring – one of the benefits many of us articulate when talking about SaaS is the cost savings that can be made. Part of these cost savings are obtained by the vendor building their applications as efficiently as possible – both in terms of provisioning efficiencies (see above) but also in terms of ongoing efficiencies. Running a SaaS application in a multi-tenant format best places a vendor to realize, and hence pass on to their customer, these efficiencies.

    Continual Improvement

    Multi-tenancy enables vendors to learn from performance issues, solve them and have that solution immediately driving benefits for all of their customers. It’s also a real driver of trust – with single-tenancy only the customer affected knows when an application goes down. With multi-tenancy everyone is affected and hence this drives performance improvements, service improvements and honesty from the vendor.

    Anyway – enough about multi-tenancy and back to the SAManage application. As the following screenshots suggest, and my kick around with the demo version confirm, SAManage is an intuitive product to use – it doesn’t take long to achieve at least a rudimentary understanding of how it works – something that is important for any product selling into businesses were users have any degree of autonomy over what they use – if it’s not intuitive and easy to get to grips with, there’s plenty of other offerings which are.

     Computer-Inventory-Details

    Of course SAManage gives users a nice graphical dashboard – full of the requisite pie chart and bar graphs:

     dashboard

    And with a nod to enterprise 2.0 – SAManage has a bunch of collaborative type functionality – in this example a service ticket can have comment, files and related incidents affixed to it by the operator or other collaborators – it also allows for auto tagging to facilitate findability at a later date:

     incident - notes

    From what I saw SAManage is a nice product that nicely blends the usability and functionality that it’s medium and enterprise customers require.

     

    CloudAve is exclusively sponsored by
  • T Shirt Friday #42 – Boomi

     

    boomifront Everyone knows that professional conference goers like myself attend events not to listen to presentations, not to network but to collect schwag. Over the past couple of years I’ve done fairly well collecting tech t-shirts and I decided to create a weekly series critiquing tech companies t-shirt offerings in the expectation that a company with  a great t-shirt is a prime candidate to have a great product also. Click here to see the series.

    If you’d like your t-shirt reviewed, flick me an email to arrange things. The judges decision is, of course, final and very little correspondence will be entered into (perhaps).

    At the recent NetSuite SuiteCloud event I was a little distressed at the dearth of shirts on offer. Unperturbed (well almost) I continued on my quest and came up with a couple of candidates – one of which is the fine Boomi shirt displayed here.DSCF6289

    Boomi does a nice shirt, they’re let down (in my mind at least) by their base color of choice but other than that they’re showing some nice design traits.

    Hot

    • The logo on the front is sufficiently enigmatic to be cool
    • The text on the back is similarly cool – not overstated but just right

    Not

    • I don’t wear dark shirts – of course that’s just me but still….

    CloudAve is exclusively sponsored by
  • Integration is Good… When You Actually Do It

     

    Recently at the SuiteCloud event (see disclosure) I attended a presentation looking at the NetSuite integration with Google apps. At the session a development company, Daston, showed off its custom built functionality that allowed for a one way creation of calendar and mail events hin NetSuite, from within Google applications.

    I watched the demonstration and was waiting for the secret sauce… only it didn’t come. When the demo was over I couldn’t help myself and asked the presenter, Mark Hill from Daston if perhaps that wasn’t a half done (or less) solution and whether it wouldn’t make a whole lot more sense to simply embed Google calendars or mail within NetSuite. The developer’s answer? “Could we do that?”

    I raised my eyebrows in the general direction of Scott McMullan who was presenting in his role of Enterprise Lead for Google Apps – McMullan diplomatically looked away – he knows me well enough to realize what I thought of that so-called “integration”. Anyway, McMullan proceeded to tell those present what the Google Apps Marketplace can mean for developers and end user customers – there were some good questions from the flow in relation to administration rights and data flows – nothing that regular readers of this blog would find surprising. McMullan did quietly admit that, despite being one of the launch partners for the marketplace over a month ago, NetSuite hadn’t actually yet finished its integration with the marketplace – a little depressing given the development that they have compared to other marketplace partners. Anyway…

    Later on the NetSuite staffer responsible for the Google Apps Marketplace integration was discussing the roadmap for that project. All he could tell me was that “at this stage” the integration was for no more than the Single Sign On aspects of the marketplace.

    I guess there’s a couple of aspects to all of this – firstly what is NetSuite’s rationale for being a part of the marketplace. Unfortunately is it was purely a marketing angle, they’ve missed the boat, it was the integrated partners on launch night who got the initial buzz of this product.

    Secondly it would be interesting to know if NetSuite actually sees value for its customers in the marketplace – clearly it’s been moving up the food chain in recent months, looking for bigger customers as it does – the Google Marketplace is primarily a SMB play and hence potentially irrelevant to NetSuite’s target market, secondly it could even be seen as damaging for NetSuite to be aligned with a marketplace such as this – it may harm their enterprise image somewhat.

    I put these questions to David Downing, CMO, NetSuite in particular the delay in getting the integration completed – his response was that “There’s no great mystery here.  We simply have other projects ahead of the Google integration and we will deliver support for OpenID-based single sign on in our next major release. 

    He reiterated that both the calendar and mail integrations have been done through the Daston group, mentioning that they’re a NetSuite SuiteCloud partner. This raises a few questions about the forced loyalty that netSuite has to its partner organizations – I came away less than impressed by Daston’s implementation and am sure NetSuite themselves could do much better – but it’s not a good look to be eating your partner’s lunch.

    It’s a really interesting tension – that of the end user experience, keeping partners happy and balancing internal development work. It’s an area that these new cloud players who are now embracing the channel fully, will need to contend with in the months ahead – under the on-premise model with it’s glacial rate of product innovation it wasn’t so much of an issue – today, the advent of web apps and broad APIs makes it a critical one.

    CloudAve is exclusively sponsored by
  • Tech Stocks, Some Interesting Trends

     

    So Greece is imploding, the flow on effects to the greater Eurozone (and even farther afield) are unknown. Wall Street is down and it’s fun to look at how tech stocks are doing…

    msft .

    Microsoft, down 2.37% on heavy trading.

    aapl

    One million iPads and Apple is still down, even so more than Microsoft.

    goog

    What’s going on here – Google the wunderkind down close to 5% on double average volumes?

    So what about the new bastion of tech stocks – the listed SaaS vendors. One down, two up on my highly unscientific sample. Standout performer seems to be NetSuite (see disclosure), up 4% on a day when the market is tanking. So why?

    crmsfsf 

    n

    Well yesterday saw NetSuite’s earnings call which saw some pretty stellar results given the difficult times:

    Total revenue for the first quarter of 2010 was $43.9 million. Revenue from the Americas for the first quarter of 2010 was $35.5 million, while revenue from international regions was $8.4 million.

    GAAP operating loss for the first quarter of 2010 was $6.6 million, compared to a GAAP operating loss of $4.0 million in the first quarter of 2009. On a GAAP basis, net loss for the first quarter of 2010 was $7.1 million, or $(0.11) per share, compared to a net loss of $3.7 million, or $(0.06) per share in the first quarter of 2009.

    Non-GAAP operating income for the first quarter of 2010 improved 81% year-over-year, growing to $1.4 million, compared to a non-GAAP operating income of $790,000 in the first quarter of 2009. Non-GAAP net income for the first quarter of 2010 was $930,000, or $0.01 per share, as compared to a non-GAAP net income of $1.0 million, or $0.02 per share, for the first quarter of 2009.

    Calculated bookings for the quarter reached $47 million, representing the highest total for a quarter in the company’s history and growing 27% year-over-year and 2.5% sequentially. The year-over-year growth represents the fastest calculated bookings growth in more than a year. This sequential growth represents the first time in the company’s history as a public company that calculated bookings have grown Q1 over Q4. Calculated bookings are defined as the change in total deferred revenue plus revenue.

    And on the back of these impressive numbers, CEO Zach Nelson took aim at some of the big boys, coming out fighting at both Microsoft and SAP and decrying their lethargy, apparent inability to innovate. It’s an interesting approach, and one that a company like NetSuite can only leverage for a short period of time – they’re getting bigger and with that comes a degree of slowness, there will soon come a point in time when they have to have a much more “high brow” discussion with the market about themselves and their competitors. For now though, sit back and enjoy the punches Zach throws around:

    Microsoft announced a bizarre offering to wind the clock back 15 years

    The current score is NetSuite 6,600, SAP 100

    We’ll await the next chapter with anticipation!

    CloudAve is exclusively sponsored by
  • T Shirt Friday #41 – Pervasive

     

    ns-pervasive-t Everyone knows that professional conference goers like myself attend events not to listen to presentations, not to network but to collect schwag. Over the past couple of years I’ve done fairly well collecting tech t-shirts and I decided to create a weekly series critiquing tech companies t-shirt offerings in the expectation that a company with  a great t-shirt is a prime candidate to have a great product also. Click here to see the series.

    If you’d like your t-shirt reviewed, flick me an email to arrange things. The judges decision is, of course, final and very little correspondence will be entered into (perhaps).

    At the recent NetSuite SuiteCloud event I met up with Adaptive Planning, a pretty cool vendor doing a nice budgeting service that is well integrated with NetSuite – I’ll review their offering sometime soon but in the meantime I’ll get the important stuff out of the way and talk about their T shirts.ns-pervasive-t-back

    I went into this review pretty hopeful – until I turned the shirt over and looked at the back! The understated an elegant front with two simple logos makes way to a diagram worthy of it’s own Hairball Award

    Hot

    • It’s white – and I’m a sucker for white shirts…
    • I quite like both the NetSuite and the pervasive logos

    Not

    • The logo on the back… I mean really!

    CloudAve is exclusively sponsored by
  • Adaptive Planning for Budgeting

     

    At the recent SuiteCloud conference (see disclosure) I met with AdaptivePlanning and had a look at their application. AdaptivePlanning was founded in 2003 by a CFO who had previously been involved with many large businesses. Having built a number…

  • SaaS Sales – Don’t Discount Traditional Channels

     

    We’ve heard for years that SaaS applications will disintermediate traditional marketing channels with it’s direct to consumer and viral uptake – many were envisaging a future without traditional media usage. The truth however seems to be somewhat different – the number of SaaS vendors I’ve spoken to recently who are embarking on “traditional” approaches is legion.

    Many are embracing channel partnerships with “old-school” services companies – witness NetSuite’s (see disclosure) new SP100 reseller model (I analyzed the move here). Witness also Intacct (see disclosure) partnering with the AICPA to sell/market/endorse their product through US CPAs.

    I recently spoke with CEO of Acumatica (more on them here) Ezekiel Steiner about their channel strategy specifically, but more generally channel strategies for ERP vendors.

    Accumatica is 100% committed to a channel strategy and sees a significant conflict with vendors who embrace both a channel and a direct sales approach. In fact Steiner went so far as to call the NetSuite moves a “gimmick” given previous comments they’ve made about the validity (or otherwise) of a channel model. Steiner believes that, for mid-market ERP products at least, a channel strategy is the only way to make money. This belief is gained from experience seeing just how much implementation help customers want – price points on mid-market ERP products are such that a direct sales and support channel isn’t viable for a vendor to establish and maintain.

    My analysis isn’t quite as stark as that of Steiner – while I’d concur that the channel is important for existing customers looking to transition to new products, there is a large number of greenfield opportunities such as businesses growing out of a lower level accounting product, and they are still likely to be amenable to the direct approach.

    I would say that a clear delineation is required between reseller prospects and direct sales prospects – resellers are feeling very fragile right now and any dual-channel approach is going to be approached with caution – it’s vitally important for vendors going down this route to have a clear demarcation in place so resellers can feel secure in the partnership.

    SaaS sales strategy, and in particular channel approaches, is an intensely interesting topic (well, to me anyway) – I’m keen to hear other vendor’s thoughts about this – flick me an email at ben@diversity.net.nz

    CloudAve is exclusively sponsored by
  • Marketing Automation Made Easy With Suitecloud Platform

     
    Netsuite’s Suitecloud is in full swing now and our own Ben and Zoli are tracking it closely. Soon the videos of Suitecloud will be available on Netsuite’s Youtube channel. The flexible Suitecloud platform is already making waves and I came across an announcement about how Leadforce1‘s marketing automation platform is integrated with Netsuite’s cloud computing platform. Leadforce1’s Marketing Automation 2.0 platform is a collaborative suite that helps sales, marketing, website optimization teams to collaborate in real time to get better insights to convert visitors into leads and eventually into business. Essentially, their Marketing Automation 2.0 platform uses effective collaboration methodologies and analytics, provides holistic view of each prospect and enables sharing and up-sell opportunities within communities across an organization’s internal and external networks.
    NetSuite’s SuiteCloud (which I think Ben will cover more here at Cloud Ave) is a comprehensive offering of on-demand products, development tools and services designed to help customers and commercial software developers take advantage of the significant economic benefits of Cloud computing. Essentially, this platform brings all the advantages of cloud computing to the hands of their ecosystem developers. We can compare Suitecloud platform to Force.com from Salesforce. The complete SuiteCloud offering includes NetSuite’s multi-tenant, always-on SaaS infrastructure; the NetSuite Business Suite of applications (Accounting/ERP, CRM, Ecommerce); the NS-BOS Development Platform; the SuiteCloud Developer Network (SDN), a comprehensive developer program for Independent Software Vendors (ISVs); and SuiteApp.com, a single-source online marketplace where customers can find applications to meet specific business process or industry-specific needs.
    With today’s announcement, Leadforce1’s marketing automation platform is integrated much deeply with Netsuite’s cloud computing platform by automating qualifying of sales leads by capturing Website visitor intent and interest, and adds an integrated call-back capability to give sales professionals live access to the most qualified prospects. Built using NetSuite’s SuiteCloud computing platform, the combined solution can help NetSuite customers increase lead-pipeline volume, reach decision-makers and close deals faster than manual methods. This platform helps marketing and sales teams of any organization using Netsuite platform collaborate more closely in real time leading to improved conversions. 
    The topic of discussion in the San Francisco Cloud Computing Club meeting held during Cloud Connect event was how cloud platforms are going to take over the world. Platforms like Netsuite’s Suitecloud and applications like Leadforce1’s marketing automation solutions are precursors to what we will be seeing in the future.
    CloudAve is exclusively sponsored by

  • SuiteCloud 2010 Here I Come

     

    This week sees me stateside for a whirlwind four day trip. I’m here to participate in SuiteCloud, NetSuite’s annual partner conference (disclosure – NetSuite covered my expenses in attending this event). I’m really looking forward to spending some facetime…